Question 1

Evidence that the monthly posting of the sales journal total has been accomplished is indicated by

Accepted Answer

A)  a signature of the accountant doing the posting. 
B)  a date under the double-line total. 
C)  the general ledger account numbers under the double-lined total. 
D)  inspecting the postings in the accounts payable subsidiary ledger. 
A)  a signature of the accountant doing the posting. 
B)  a date under the double-line total. 
C)  the general ledger account numbers under the double-lined total. 
D)  inspecting the postings in the accounts payable subsidiary ledger.

Question 2

The entry to record the granting of credit to a customer for a sales return is posted to

Accepted Answer

A)  the accounts receivable subsidiary ledger only. 
B)  the general ledger only. 
C)  both the accounts receivable subsidiary ledger and the general ledger. 
D)  both the accounts payable subsidiary ledger and the general ledger. 
A)  the accounts receivable subsidiary ledger only. 
B)  the general ledger only. 
C)  both the accounts receivable subsidiary ledger and the general ledger. 
D)  both the accounts payable subsidiary ledger and the general ledger.

Question 3

The amounts appearing in the Merchandise Inventory column of the cash payments journal are posted individually to the accounts in the accounts payable subsidiary ledger.

Accepted Answer

A) True 
 B)False

Question 4

The one characteristic that all entries recorded in a cash receipts journal have in common is

Accepted Answer

A)  a credit to the Cash account. 
B)  that they all represent collections from customers. 
C)  that they originate from the sales of merchandise. 
D)  a debit to the Cash account. 
A)  a credit to the Cash account. 
B)  that they all represent collections from customers. 
C)  that they originate from the sales of merchandise. 
D)  a debit to the Cash account.

Question 5

An entry in the "Other Accounts" column in a cash receipts journal could occur when the credit is to

Accepted Answer

A)  owner's drawing. 
B)  Accounts Payable. 
C)  owner's capital. 
D)  Merchandise Inventory. 
A)  owner's drawing. 
B)  Accounts Payable. 
C)  owner's capital. 
D)  Merchandise Inventory.

Question 6

The entries in the Accounts Receivable Credit column of the cash receipts journal must be posted _______________ to the accounts in the accounts receivable subsidiary ledger and in _______________ to the control account in the general ledger.

Accepted Answer

The answer of The entries in the Accounts Receivable Credit...

Question 7

Postings are made daily to the

Accepted Answer

A)  Accounts Receivable control account. 
B)  Accounts Payable control account. 
C)  Accounts Receivable subsidiary ledger. 
D)  control accounts in the general ledger. 
A)  Accounts Receivable control account. 
B)  Accounts Payable control account. 
C)  Accounts Receivable subsidiary ledger. 
D)  control accounts in the general ledger.

Question 8

An accounts receivable subsidiary ledger has all the detailed information about the cash sales to individual customers.

Accepted Answer

A) True 
 B)False

Question 9

The basic principles of an accounting information system are cost awareness, usefulness, and fixed structure.

Accepted Answer

A) True 
 B)False

Question 10

If a company records merchandise it returns to suppliers in the general journal, then

Accepted Answer

A)  a posting must be made only to the accounts payable control account. 
B)  a posting must be made only to the accounts payable subsidiary ledger account. 
C)  a dual posting must be made. 
D)  there will be a debit to Merchandise Inventory. 
A)  a posting must be made only to the accounts payable control account. 
B)  a posting must be made only to the accounts payable subsidiary ledger account. 
C)  a dual posting must be made. 
D)  there will be a debit to Merchandise Inventory.

Question 11

Journalizing in a sales journal will not

Accepted Answer

A)  require a debit to Accounts Receivable. 
B)  show a sales invoice number. 
C)  affect the reference column of the journal. 
D)  include a credit to the Sales account. 
A)  require a debit to Accounts Receivable. 
B)  show a sales invoice number. 
C)  affect the reference column of the journal. 
D)  include a credit to the Sales account.

Question 12

A company would not likely use subsidiary ledgers for

Accepted Answer

A)  inventory. 
B)  owner's capital. 
C)  equipment. 
D)  accounts receivable. 
A)  inventory. 
B)  owner's capital. 
C)  equipment. 
D)  accounts receivable.

Question 13

Indicate whether each of the following accounts would be shown in the general ledger or subsidiary ledger.
1. Cash ____________________
2. Accounts Receivable-Larson ____________________
3. Equipment ____________________
4. Accounts Payable-Parks ____________________
5. Common Stock ____________________
6. Sales ____________________

Accepted Answer

1. General ledger 4. Subsidiar

Question 14

The Other Accounts column of a multi-column journal is often referred to as the

Accepted Answer

A)  Sundry Accounts column. 
B)  Controlling Account column. 
C)  Credit Account column. 
D)  Debit Account column. 
A)  Sundry Accounts column. 
B)  Controlling Account column. 
C)  Credit Account column. 
D)  Debit Account column.

Question 15

Companies record credit purchases of equipment or supplies in the

Accepted Answer

A)  cash payments journal. 
B)  cash receipts journal. 
C)  general journal. 
D)  one-column purchases journal. 
A)  cash payments journal. 
B)  cash receipts journal. 
C)  general journal. 
D)  one-column purchases journal.

Question 16

A company will usually replace a manual accounting information system with an electronic system as the operations increase in

Accepted Answer

A)  efficiency. 
B)  complexity. 
C)  simplicity. 
D)  productivity. 
A)  efficiency. 
B)  complexity. 
C)  simplicity. 
D)  productivity.

Question 17

A subsidiary ledger is

Accepted Answer

A)  used in place of the general ledger if the general ledger is destroyed or stolen. 
B)  a group of accounts used by branches and subsidiaries of a corporate business. 
C)  a group of accounts with a common characteristic that provides detailed information about a control account in the general ledger. 
D)  used to post excess transactions if a general ledger account becomes full during an accounting period. 
A)  used in place of the general ledger if the general ledger is destroyed or stolen. 
B)  a group of accounts used by branches and subsidiaries of a corporate business. 
C)  a group of accounts with a common characteristic that provides detailed information about a control account in the general ledger. 
D)  used to post excess transactions if a general ledger account becomes full during an accounting period.

Question 18

Principles of an efficient and effective accounting information system include all of the following except

Accepted Answer

A)  cost effectiveness. 
B)  flexibility. 
C)  useful output. 
D)  All of these options are principles. 
A)  cost effectiveness. 
B)  flexibility. 
C)  useful output. 
D)  All of these options are principles.

Question 19

A cash receipts journal can be used to record all transactions involving cash coming into the business, regardless of the source.

Accepted Answer

A) True 
 B)False

Question 20

The reference column in a sales journal is used to indicate the general ledger account number when the entry is posted.

Accepted Answer

A) True 
 B)False

Exam 7: Accounting Information Systems

Evidence that the monthly posting of the sales journal total has been accomplished is indicated by

The entry to record the granting of credit to a customer for a sales return is posted to

The amounts appearing in the Merchandise Inventory column of the cash payments journal are posted individually to the accounts in the accounts payable subsidiary ledger.

The one characteristic that all entries recorded in a cash receipts journal have in common is

An entry in the "Other Accounts" column in a cash receipts journal could occur when the credit is to

The entries in the Accounts Receivable Credit column of the cash receipts journal must be posted _______________ to the accounts in the accounts receivable subsidiary ledger and in _______________ to the control account in the general ledger.

Postings are made daily to the

An accounts receivable subsidiary ledger has all the detailed information about the cash sales to individual customers.

The basic principles of an accounting information system are cost awareness, usefulness, and fixed structure.

If a company records merchandise it returns to suppliers in the general journal, then

Journalizing in a sales journal will not

A company would not likely use subsidiary ledgers for

The Other Accounts column of a multi-column journal is often referred to as the

Companies record credit purchases of equipment or supplies in the

A company will usually replace a manual accounting information system with an electronic system as the operations increase in

A subsidiary ledger is

Principles of an efficient and effective accounting information system include all of the following except

A cash receipts journal can be used to record all transactions involving cash coming into the business, regardless of the source.

The reference column in a sales journal is used to indicate the general ledger account number when the entry is posted.

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Corporations: Organization and Capital Stock Transactions

Corporations: Dividends, Retained Earnings, and Income Reporting

Long-Term Liabilities

Investments

Statement of Cash Flows

Financial Analysis: the Big Picture

Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit

Incremental Analysis

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Filters

The entries in the Accounts Receivable Credit column of the cash receipts journal must be posted _ to the accounts in the accounts receivable subsidiary ledger and in _ to the control account in the general ledger.